The Cayman Islands Government has proposed the reintroduction of a 25-year Direct Investment Certificate for private individuals seeking to invest in the local economy, according to Cayman Net News.

The paper said that Premier McKeeva Bush, who was speaking in the Legislative Assembly on Wednesday, outlined the proposal as part of a list of initiatives the government has put forward to boost the financial services sector, by attracting high net worth individuals to reside in the islands.

The Premier was delivering the 2010/2011 Strategic Policy Statement, the first for the United Democratic Party government, which outlines the government's strategic outcome for the next three years and establishes broad parameters for the 2010/11 budget.

Noting that the Cayman Islands is currently facing serious economic challenges, he said this was also related to the fact that the North American and European economies have been severely impacted.

"We must do everything possible to mitigate the negative impacts of this current crisis," he said, stating that the government needed to rebuild for a stronger, more diverse economy to better deal with any future crisis.

Previously called the Entrepreneur and Investor certificate, the Direct Investment Certificate would grant private individual investors the right to live in Cayman and work in that business for a renewable period of 25 years. It was first introduced into immigration legislation by the government in November 2003.

"The right of residency would also apply to persons already living here, who can show that they have made similar levels of investment," Mr. Bush said. Stressing the importance of the financial services sector to Cayman's economy, Mr Bush made reference to a recent economic impact study commissioned by a consortium of associations of the private sector that reported that the industry generated CI$1.2 billion or 55 percent of the country's gross domestic product.

In 2007, the study showed, the financial services sector generated CI$204 million or 40 percent of all government revenues. It was also reported that the sector provided employment for some 5,700 persons, of which 60 percent are Caymanian.

Mr Bush has been leading a campaign to persuade the financial services sector companies to create incentives for new businesses to establish a presence in the Cayman Islands.

Other new measures proposed as part of the campaign include accelerated work permit processing times, with a greater degree of certainty, three to five year work permits for financial services entities relocating their operations here, and key employee status for senior staff.